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HMRC internal manual

PAYE Manual

PAYE Manual: recent changes

Only important changes for dissemination to staff are listed in the table below. The content of other pages within this Manual may have required a minor change because of an update to the originating subject(s) listed or to correct spelling mistakes or links, or to change page presentation. You are reminded that any page printed from this Manual is uncontrolled and may not be the latest version. It is recommended you always refer to guidance online.


Page Details of update

Left bar content

PAYE001 (HMRC Intranet only)  ‘Business Calendar’ - Updated. Entries for November 2011 removed and entries for November 2012 added.
PAYE056 (HMRC Intranet only)  ‘Index of Forms’ - Entries for ‘AR1MN’, ‘AR1N’, ‘AR2MN’, ‘AR2N’ and ‘AR6’ removed.
PAYE058 (HMRC Intranet only)  ‘Work Items’ - Entry for Work Item 098 updated with a link to the SPD which has replaced the Action Guide (which was at PAYE93027 - see entry below).


PAYE11010 ‘Codes: how they are used and calculated: cases where you should use code NT’ - Text updated under sub heading ‘Certain professions’ and new sub heading and text added for the ‘Entertainment industry’.
PAYE11115 ‘Codes: how they are used and calculated: deductions - how to calculate’ - In the table headed ‘P202: deductions’, ‘Circumstances’ column for the ‘Adjustment for Tax rate bands. From 2011-2012’, updated.
PAYE13106 ‘Coding: general principles: married couples: date of marriage prior to 5 December 2005: deceased cases (Action Guide)’ - Action Guide removed as it has been replaced by SPD 6g.1.

Employer records

PAYE20026 ‘Set up employer record: election for separate schemes (Action Guide)’ - Action Guide and steps updated under sub heading ‘Election made by employer not acquiring a business’ and remaining steps re-numbered.

Employer returns

PAYE43015 ‘Capture employer return - 2005 onwards: capture pro forma returns - 2005 onwards (Action Guide)’ - Text added to first bullet at step 1.
PAYE44030 ‘Electronic employer returns: PAYE online for employers - internet’ - Sub heading ‘Reminders and notifications’ updated to read ‘Notifications’ and text updated.
PAYE47061 ‘Employer return - overpayments: overpayment notification (Action Guide)’ - Under sub heading ‘Is the value of the overpayment £500.00 or less?’, step 8 updated.
PAYE48120 ‘View / maintain BROCS: next action codes’ - In the table, entries for ‘AR1’, ‘AR2’ and ‘AR6’ removed.
PAYE48125 ‘View / maintain BROCS: previous action codes’ - In the table, entries for ‘AR1MN’, ‘AR1N’, ‘AR2MN’, ‘AR2N’ and ‘AR6’ removed.
PAYE48130 ‘View / maintain BROCS: reminding actions for returns’ - Under sub heading ‘Reminder issue by Debt Management Office’, reference to ‘AR2N’ removed.
PAYE50960 ‘Employer starter and leaver forms: employer e-file in-year penalties: dealing with appeals against failing to file online’ - Under sub heading ‘Data Security’, third bullet updated and fourth bullet added.
PAYE50961 ‘Employer starter and leaver forms: employer e-file in-year penalties: dealing with appeals against failing to file online (Action Guide)’ - Action Guide updated.

Employment maintenance

PAYE60001 ‘In-year forms and data capture: introduction’ - Under sub heading ‘Other forms’, text added to first paragraph.
PAYE61035 ‘Create employment: receipt of form P46’ - First paragraph updated.

PAYE operation

PAYE70245 ‘Specific employments: examining bodies - fees to examiners’ - Further entry added to the table under sub heading ‘Table of examining boards, universities and authorised examining bodies’.
PAYE73015 ‘Simplified deduction schemes: code change’ - Under sub heading ‘Receipt of form P12R’, first paragraph updated.
PAYE73020 ‘Simplified deduction schemes: employee leaves’ - First paragraph updated.
PAYE76070 ‘Pensioners: P46(DWP)’ - Removed reference to PAYE13106 as the Action Guide has been removed (see entry above) and link added to SPD 6g.1. ‘Note 2’ added at the end of the subject.
PAYE76071 ‘Pensioners: P46(DWP) (Action Guide)’ - ‘Note’ added to step 7.
PAYE76075 ‘Pensioners: P46(DWP) details’ - In the table, the ‘Meaning / action’ column for the ‘Date of entitlement’ entry has been updated.
PAYE76100 ‘Pensioners: P173’ - ‘Note’ added to the first bullet.
PAYE76125 ‘Pensioners: deferred state pension’ - Removed the reference to PAYE76126 (see entry below) and link added to SPD 6g.4.
PAYE76126 ‘Pensioners: deferred state pension (Action Guide)’ - Action Guide removed as this has been replaced by an SPD.
PAYE81071 ‘Double taxation claims submitted by non resident individuals: cancellation of double taxation relief: coding (Action Guide)’ - Under sub heading ‘Issue P173’, ‘Note’ added to step 11.

Reconcile individual

PAYE91040 ‘Overpayments: nominees’ - Under sub heading ‘Nominees with addresses outside the United Kingdom’, PAYE reference number added to second paragraph.
PAYE91041 ‘Overpayments: nominees (Action Guide)’ - Under sub heading ‘Receipt of a nomination / assignment’ at step 5, PAYE reference number added to second bullet under heading ‘If the repayment is going to a nominees who is a person’.
PAYE91062 ‘Overpayments: prepare and issue a manual repayment’ - Further 2 bullets added at the end of the subject relating to ‘the only repayments that should be made using the manual PO process’.
PAYE92035 ‘Posting P14 to individual record: overview of responsibilities at the end of the tax year’ - Text updated under sub heading ‘PAYE Errors Unit (PEU)’.
PAYE92050 ‘Posting P14 to individual record: PAYE Errors Unit (PEU)’ - Subject updated.
PAYE92060 ‘Posting P14 to individual record: revision of employer’s returns’ - Subject updated.
PAYE92065 ‘Posting P14 to individual record: under-deductions - action required in service teams’ - Subject deleted (see entry for PAYE92066 below).
PAYE92066 ‘Posting P14 to individual record: under-deductions’ - Title updated (previously called ‘Posting P14 to individual record: under-deductions - action required in service teams (Action Guide)’). Action Guide removed and subject updated.
PAYE93015 ‘End of year reconciliation: reconciliation summary screen’ - Text added at the beginning about re-reconciliations.
PAYE93027 ‘Work item 98 - deceased - unable to clear record (Action Guide)’ - Action Guide removed as it has been replaced by an SPD.
PAYE93034 ‘End of year reconciliation: existing SA case - changing / setting an SA start year (Action Guide)’ - New steps 1 and 2 added and remaining steps re-numbered.
PAYE93036 ‘End of year reconciliation: tax calculation issues’ - Sub heading for ‘Investment Income’ renamed as ‘Investment Income - general’ and further text added. New sub heading and added for ‘Investment Income - Taxed Investment Income carried forward’.
PAYE93038 ‘End of year reconciliation: net of tax arrangements’ - Subject updated.
PAYE94025 ‘In-year reconciliation: cessation repayments’ - Text updated under sub heading ‘Employment related benefits in the code’.
PAYE95001 ‘HMRC delay: ESC A19: introduction’ - Subject updated.
PAYE95010 ‘HMRC delay: ESC A19: who is eligible?’ - Subject updated.
PAYE95011 ‘HMRC delay: ESC A19: employer error’ - Subject updated.
PAYE95015 ‘HMRC delay: ESC A19: what duties can be given up?’ - Subject removed.
PAYE95020 ‘HMRC delay: ESC A19: important points to bear in mind’ - Subject removed.
PAYE95025 ‘HMRC delay: ESC A19: Basic tests to be applied’ - Subject updated.
PAYE95030 ‘HMRC delay: ESC A19: underpayments - communication with the taxpayer’ - Subject removed.
PAYE95035 ‘HMRC delay: ESC A19: underpayments - overpaid tax for other tax years’ - Title updated (previously called ‘HMRC delay: ESC A19: underpayments - treat each year separately’). Subject updated
PAYE95040 ‘HMRC delay: ESC A19: over-repayments’ - Subject updated.
PAYE95045 ‘HMRC delay: ESC A19: failure to use information - type of information’ - Subject updated.
PAYE95050 ‘HMRC delay: ESC A19: when was information received from the taxpayer?’ - Subject updated.
PAYE95055 ‘HMRC delay: ESC A19: information from the employer’ - Subject updated.
PAYE95065 ‘HMRC delay: ESC A19: what years?’ - Subject updated.
PAYE95070 ‘HMRC delay: ESC A19: exceptional circumstances - key points’ - Text updated under sub heading ‘Viewing records’.
PAYE95075 ‘HMRC delay: ESC A19: exceptional circumstances - examples’ - Subject updated.
PAYE95080 ‘HMRC delay: ESC A19: reasonable belief’ - Subject updated.
PAYE95081 ‘HMRC delay: ESC A19: reasonable belief - factors’ - Subject updated.
PAYE95085 ‘HMRC delay: ESC A19: Advisory Tool’ - Title updated (previously called ‘HMRC delay: ESC A19: ESC A19: flowchart’). Subject updated.
PAYE95090 ‘HMRC delay: ESC A19: turning down claims for relief and objections by taxpayers’ - Subject updated.
PAYE95095 ‘HMRC delay: ESC A19: authorisation of tax to be given up’ - Subject updated.
PAYE95105 ‘HMRC delay: ESC A19: HMRC delay ESC A19 - office record of amounts given up’ - Title updated to include ‘of amounts given up’. Subject updated.
PAYE95110 ‘HMRC delay: ESC A19: control of office record and LOMR’ - Subject updated.

Individual records

PAYE103095 ‘Work item 252 - PAYE Service/Frameworks - confidence check exception (Action Guide)’ - ‘Note’ added above the table about what happens if several updates fail to match.
PAYE104041 ‘Merge individual records: manual merge: post-merge accounting/reconciliation review (Action Guide)’ - Under sub heading ‘Underpaid and balanced results’, step 4 updated.


PAYE130040 ‘IABD: employment benefits’ - In the first table, entries in second column updated for the entries for ‘Assets’ and ‘Asset Transfer’.
PAYE130065 IABD: pensions’ - Removed reference to PAYE130066 (see entry below) and replaced it with a link to SPD 6g.3.
PAYE130066 ‘IABD: state pensions (Action Guide)’ - Action Guide removed as replaced by SPD 6g.3.
PAYE130067 ‘IABD: amendments and updates to state pension’ - Under sub heading ‘State pension commences earlier than CY’, ‘Note’ added to final bullet.